Cardholders rushing into new credit card deals

25/06/2007

Most potential cardholders look at the brand and reputation of the credit card before looking at advantages the card offers such as balance transfer fees and new long balance-transfer periods.

Fool.co.uk showed that eight out of ten potential credit card customers would go for a credit card with good reputation and not look into the advantages of the actual card.

Nearly eight of ten people stated that APRs were the most important factor to consider than searching the market for 0 per cent offers.

Updates from Credit Action indicated that 9 per cent of cardholders within the UK applied for a credit card to simply clear remaining debt.

Head of personal finance, David Kuo, explained that Barclaycard was voted the finest credit card.

"However, as one of the major credit card providers in the UK, Barclaycard must bear some responsibility for ensuring that the industry remains competitive by continually improving its offering to customers," he stated.

"It must stop talking of introducing annual fees for low-usage customers, which sends out the wrong message to sensible consumers. It should not frighten customers into using their credit cards to simply avoid paying annual fees."